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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 4, 2006 <br />Action Agenda <br />Item No. 5- K <br />SUBJECT: Resolution Authorizing Installment Financing Contract far Equipment <br />Purchases <br />DEPARTMENT: Finance PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Resolution Ken Chavious, 919-245-2450 <br />PURPOSE: To consider adopting a resolution required by SunTrust Bank to facilitate the <br />financing of equipment approved for purchase by the Board in April 2006, <br />BACKGROUND: At meetings on April 18 and April 20, 2006, the Board approved the purchase <br />of vehicles and equipment totaling $1,551,318. Board action also accepted a proposal from <br />SunTrust Bank to finance the approved equipment that included bath a 36 month transaction <br />($950,255) related to vehicles and a 59 month transaction ($600,900) related to the heavy <br />equipment. In order to accomplish the financing, the bank requires that the County adapt an <br />official resolution authorizing the execution and delivery of the installment financing contracts <br />and other documents, The resolution necessary to complete the financing has been reviewed <br />by County staff and the County Attorney and is attached, including copies of the proposed <br />amortization schedule for both the 36 and 59-month transactions. <br />FINANCIAL IMPACT: As mentioned above, the total amount to be financed under the <br />transactions with SunTrust is $1,551,318, The County received excellent interest rates on both <br />transactions. For the 36-month transaction totaling $950,255, the interest rate is 3,70% and <br />annual payments are approximately $337,574, depending on closing date, Far the 59-month <br />transaction totaling $600,900, the interest rate is 3,74%, and the amount paid annually would <br />be approximately $146,326. These amounts have been factored into the County's debt <br />issuance schedule and fall within the Board's self-imposed debt capacity parameters. The debt <br />service amounts will be included in the County Manager's recommended budget for 2006-2007. <br />RECOMMENDATION(S): The Manager recommends that the Board adopt the resolution and <br />authorize the Finance Director and County Attorney to execute documents as required to <br />accomplish the financing with SunTrust Bank, <br />